The budget is also expected to build on structural reforms undertaken in recent years by balancing growth imperatives with simplification and fiscal consolidation. Esop taxationThe deferment mechanism introduced in 2020 for Esop perquisite taxation currently applies only to “eligible start-ups”. Minor tax offencesCurrently, in 25 of 35 offences (~71 per cent) under the current Income Tax Act mandatory minimum imprisonment has been prescribed. Additionally, the validity of advance rulings could be extended from three to five years, with a formal renewal mechanism to enhance tax certainty. A clear mechanism for renewal of advance rulings might be introduced, enabling businesses to maintain continuity and predictability in their tax positions.

Source: The Telegraph January 29, 2026 08:17 UTC